Sugar Production In The Ottoman Empire
(1840-1908)
Osmanlı Devleti’nde Şeker Üretimi (1840-1908)
Fatih Damlıbağ*Abstract
Historically only sugar source plant was sugar cane. For the Ottoman Empire, this situation did not also differ. Especially sugar cane cultivator southern provinces were main sugar providing areas of the Ottoman Empire. But with 17th century, strong American competition
considerably diminished Ottoman sugar production. Hereafter, sugar became imported goods for Ottoman people. But invention of sugar extraction from beet took attention of many entrepreneurs to this sector. Primarily sugar had already great market in the Ottoman Empire. Moreover sugar beet cultivation has much more advantages than sugar cane. Beet requires less irrigation and it was resistant to lower temperatures. That means many regions of the Ottoman Empire could be opened sugar production. In this article, time period was held quite a long; because sugar manufacturing was not very common activity in the Ottoman Empire in this period. In general, sugar production entrepreneurs could be divided in to two parts. In the beginning, Dimitri Efendi, Davutoğlu Karabet and Monsieur Michel planned to establish their factories in İstanbul and İzmir for transportation facilities and closeness to main consumption centers. But after 1890’s, new entrepreneurs took into account raw material needs in their investment plans. All newly chosen places were either former cultivation centers or very convenient places for sugar cane or beet agriculture. This attitude was very important, because sugar production was completely dependent to rapid raw material flow in that time and also today. The Ottoman Empire granted every possible facility to sugar producers to decrease trade deficit. As to entrepreneurs, some of them remained on paper. But Monsieur Michel founded a factory for experimentation. Rauf Pasha started beet cultivation and sent them to analyze for learning sugar
* Assi. Prof., Gümüşhane University, Faculty of Economics and Administrative
content. But in general, sugar production entrepreneurs were not successful. Because sugar remained an important part of import, up to end of the Ottoman Empire.
Keywords: sugar, sugar cane, sugar beet, factory, agriculture.
Özet
Tarihsel olarak şeker kaynağı olan tek bitki şeker kamışıydı. Osmanlı Devleti için de bu durum farklı değildi. Özellikle şeker kamışı yetiştiren güney eyaletler, Osmanlı Devleti’nin ana şeker sağlayıcı bölgeleriydi. Fakat XVII. Yüzyılla birlikte, güçlü Amerikan rekabeti Osmanlı şeker üretimini önemli ölçüde azaltmıştır. Bundan sonra şeker Osmanlı halkı için, ithal bir ürün haline geldi. Fakat pancardan şeker çıkarılmasının keşfi, pek çok girişimcinin dikkatini bu sektöre çekmiştir. Öncelikle şeker Osmanlı Devleti’nde önemli bir pazara sahipti. Üstelik şeker pancarının yetiştirilmesi şeker kamışına göre pek çok avantaja sahipti. Pancar daha az sulamaya ihtiyaç duyarken, daha düşük sıcaklıklara da dayanıklıydı. Bu Osmanlı Devleti’nin pek çok bölgesinin şeker üretimine açılabilmesi demekti. Bu makalede zaman dilimi biraz uzun tutulmuştur, çünkü Osmanlı Devleti’nde şeker üretimi bu dönemde çok yaygın bir faaliyet değildi. Genel olarak şeker üretimi girişimcileri iki parçaya ayırılabilir. Başlangıçta ulaşım kolaylığı ve ana tüketim merkezlerine yakınlık dolayısıyla; Dimitri Efendi, Davutoğlu Karabet ve Monsieur Michel fabrikalarını İstanbul ve İzmir’e kurmayı planlamışlardır. Fakat 1890’lardan sonra, yeni girişimciler yatırım planlarında hammadde ihtiyacını dikkate almaya başlamışlardır. Yeni seçilen bütün yerler ya eski üretim merkezleri, ya da şeker kamışı veya pancarı tarımına çok uygun yerlerdi. Bu tutum çok önemlidir, çünkü şeker üretimi hem o zaman hem de günümüzde, hızlı hammadde akışına tamamen bağımlıdır. Osmanlı Devleti mümkün olan her türlü imkânı şeker üreticilerine bağışlayarak, ticaret açığını azaltmaya çalışmıştır. Girişimcilere gelince bazıları kâğıt üstünde kalmıştır. Fakat Monsieur Michel deneme amaçlı bir fabrika kurmuştur. Rauf Paşa pancar üretimine başlamış ve şeker içeriğini öğrenmek için onları analize göndermiştir. Fakat genel olarak şeker üretimi girişimcileri başarılı değillerdir. Çünkü şeker ithalatın önemli bir parçası olarak Osmanlı Devleti’nin sonuna kadar kalmıştır.
Anahtar Kelimeler: şeker, şeker kamışı, şeker pancarı, fabrika,
tarım.
Introduction
Sugar cane and sugar beet are the two most important sources of processed sucrose of the refined carbohydrate product the people consume and call sugar. Sugar beet was not economically important as a source of sucrose, until the middle of the nineteenth century. But sugar cane has been the prime
source of sucrose for more than a millennium and perhaps for much longer. 1
Sugar beet stores sugar in its long, tapering, silvery-white roots. An average beet weighs about two pounds. Beet matures in six to nine months. Thus beet is adapted to those climates in which crops must be produced between the last frosts of spring and the onset of the following winter. At harvest time beet is lifted from the ground and the leafy top is cut off. Sugar cane is a tall perennial grass. Its stalk is divided into sections by joints and each joint contains a bud which will sprout when planted. Sections of the stalk are carefully selected for planting and dropped lengthwise into furrows. Cane is a thirsty plant and irrigation is practiced in areas in which average rainfall is insufficient to produce successful crops. 2
The steps by which sugar is obtained from sugar cane and sugar beet differ in some respects but the principal operations are similar. In short, they are: to extract the sugar containing juice from the plant, to remove impurities in the juice, to concentrate it by boiling until crystals form, to separate the crystals from syrup and finally to wash crystals. The sugar obtained is a water-white crystalline solid and consists of 99.9% sucrose. 3
Sugar cane production began in India. Firstly sugar pith could only convert as pellet which had name of (Gur). But later production skills developed within time and then granular type of sugar commenced to produce. After Indians, Chinese and Iranian people also started sugar production. In BC 327, the soldiers of Alexander the Great became the first Europeans to see sugar cane. Egypt had been conquered by Arabs in 641 and sugar cane entered Mediterranean domain. Umayyad ruler Abdurrahman I brought sugar cane to Spain in approximately 755. During Umayyad administration a highly developed sugar industry founded in Iberian Peninsula. The peninsula and near Mediterranean islands had continued their importance in sugar production, up until to the collapse of Umayyad administration. After that event sugar production began to slide to New World. 4
After Mediterranean basin and before New World, sugar industry shifted for a short period to the Atlantic islands. In their search for favorable sugar production places; Portugal seized Sao Tomé and other islands, Spain captured the Canaries. But situation changed when the American industries began to grow. Sugar cane was first carried to the New World by Columbus in his
1 Sidney Wilfred Mintz, Sweetness and Power: The Place of Sugar in Modern History, Penguin
Books, New York 1986, p. 19.
2 ….., Sugar: An Illustrated Story of the Production and Processing of a Natural Food and Useful
Chemical, Sugar Research Foundation, New York 1948, p. 4-5.
3 Ibid, p. 3.
4 Noel Deerr, Kamış Şekeri, tra. Baha Esat Karova, Türkiye Şeker Fabrikaları A.Ş.
second voyage. He brought cane there from Spanish Canary Islands in 1493. Sugar cane was first grown in the New World in Spanish Santa Domingo. In around 1516, Santa Domingo’s sugar exported to Europe. Spain formed African slave labor and plantations also in the other Caribbean Islands. By 1526, Brazil was shipping sugar to Lisbon in commercial quantities. 16th century
became Brazilian century for sugar production. Developments on the mainland left behind Spanish sugar production activities. After the success of Portuguese in Brazil, French people entered sugar production sector and became accomplished within a century. British people followed French in sugar production. Both of them organized sugar plantations in Caribbean islands during 17th century. Sugar cane production increased rapidly, because of
continuously growing demand. In the middle of 19th century, Cuba and Brazil
were the major production centers for cane sugar. 5
As to beet sugar, it was discovered by Andraeas Sigismond Marggraf in 1747. Marggraf was an eminent chemist that he showed beet sugar is as identical as cane sugar in his discovery. Although Marggraf’s discovery, sugar could not produce commercially in Germany. For the late coming of this industry, there were two reasons. Firstly sugar could still be bought more cheaply from the tropics, because with the available techniques sugar production from beet required much more expenditures. Secondly Marggraf recommended the beet as a source of syrups for cooking, not as the basis of industry. This situation changed with the Napoleonic Wars, because military conflicts blocked cane sugar transportation. On the other hand, investigations were lasted about beet sugar; although it could not gain a commercial importance. Marggraf’s student and successor began a systematic study of beet sugar in 1786 at Caulsdorf. Thus, by the time of the Napoleonic Wars, sugar shortages could be overcame with the availability of beet sugar technology. 6
In 1799 Achard presented Frederick William III of Prussia with a loaf of beet sugar prepared at a Berlin refinery. With royal assistance, Achard set up a sugar works. But this work was failed, mainly due to his lack of business skill, although insufficient research and development may have played a part as well. Achard applied France with his results, because of French investigations about getting sugar from grapes. But nothing had happened. Meanwhile a Königsaal refinery in Bohemia produced beet sugar in 1797, and also another beet sugar factory opened at Horowitz in 1800. France maintained their researches to carry out systematic tests of new plants. They also crossed various strains of beet. The factory of Freiherr Moritz von Koppy started production in 1806. His (White Silesian) beetroot has provided all of the modern strains of sugar beet. Achard also told with Russian Tsar of his work and opened a factory in
5 S. W. Mintz, Sweetness and Power, p. 31-32.
here. In 1809 there were eight factories in Russia. Napoleon ordered an expansion of the French beet sugar enterprise. By the time of 1813, France had 334 factories producing nearly 4000 tons of sugar. But this beet sugar industry boom came nearly to the end. As Napoleon’s armies began to retreat, Europe opened up again to English trade and to sugar from the British colonies. After the peace which was signed in 1815, British cane and French beet sugar competition had deepened for the other part of the century. 7
For the competition, sugar beet gained an advantage within time over sugar cane. In 1836 the best beet sugar yield was about 5.5 % by weight, but this ingredient reached 16.7 % in 1936. This increase came partly from improved plants, but more came from better methods of extraction. In 1866 Jules Robert developed a new diffusion technique. With Robert’s new method, beet sugar effectively competed with cane sugar after 1880’s. Even in 1885, the world produced more beet sugar than cane sugar. Beet sugar had also two more advantages. Growing sugar beet provided important amount of discount in transportation fee. Even in about 1850s, sugar beet commenced to grow in places like Utah which is in the middle of the USA. Second advantage of beet sugar was its superior storage simplicity. Because beet sugar could be produced as white granules; thus it did not lose weight in transit, something the wholesalers appreciated. But beet sugar was not free from drawback. In order to whiten color of sugar, a small amount of sulfuric acid added to it in 1890s. Although sugar had a strong chemical smell, traders claim that they had no choice. They said that, with its original brownish yellow color, this sugar could not be sold. 8
Historical Background of Sugar in the Ottoman Empire
In the time, sugar gained an important place in Ottoman court. In weddings and some other entertainments, there was a great demand to sugar by imperial family. Cyprus and Egypt were the main suppliers of this demand. But imperial palace also gained sugar from some European sources, mostly from Venice. But this total dependence of importation changed with the conquest of Syria, Egypt and Cyprus in 16th century. From this time, the Ottoman Empire
became not just consumer but also producer. Newly captured regions strictly evaluated to consider their sugar producing potential. Mostly these regions were taken under the control of state. Sugar trade also attracted many local and foreign traders. Because sugar provided considerable profit and endured much more than from other food products. 9
Cyprus was an important sugar production place of the Ottoman Empire. Even before Ottoman conquest, sugar had been produced in here for more
7 Ibid, p. 134-136.
8 P. Macinnis, Bittersweet, p. 140-141.
9 Zafer Karademir, “Osmanlı İmparatorluğu’nda Şeker Üretim ve Tüketimi
than three centuries. Cypriot sugars were whiter than Cairo and Damascus products, but they had less quality. Paphos (Baf) and Limassol were the main production centers in Cyprus. 10 But small part of produced sugar was sold in
Cyprus. The bulk of sugar was sent to İstanbul for the consumption of palaces. Although the existence of Cypriot sugar refineries were noticed by many historians; production techniques, prices, way of transportation to İstanbul palaces and smuggling of sugar were not known. 11
Towards to the end of 16th century, Ottoman sugar producers
encountered strong competition. Especially American sugar began to control European markets. American products had two advantages that it was cheaper than local product and it had much more quality. When sugar had risen in Atlantic, sugar industry of Mediterranean rapidly deteriorated from Sicily to Cyprus. In Mediterranean region, industrial raw materials gained much more importance. In Southern Germany linen, in Italy hemp and in the Ottoman Empire cotton were begun to cultivate in a larger extent. 12
Price competition was a big problem for Ottoman sugar producers. But some other problems were also happened in manufacturing. Production facilities and techniques of the Ottoman Empire could not improve as fast as European and American ones. Ottoman sugar had lower purity than its rivals. Except technical difficulties, there was some agricultural infrastructure problems occurred mostly in Cyprus. Irrigation could not maintain as strongly as Venetian times. The Ottomans monopolistic excessive interferences also caused some difficulties in sugar production. In Mediterranean many sugar plantations abandoned production, because of decreasing prices. Olive and cotton cultivation or sheep raising provided much more profit. Although sugar production lasted in Egypt, Ottoman sugar production lost its former importance in 17th and 18th centuries. 13
Position of Sugar as Consumer Goods in the Ottoman Empire Sugar was an import commodity in the Ottoman Empire during 19th
century. According to the first statistical yearbook of the Ottoman Empire and for the financial year of 1894, raw sugar was totally imported and its value was 157,582,667 piasters.14 When manufactured sugar considered a bit of export
10 Halil Sahillioğlu, Osmanlı İdaresinde Kıbrıs’ın İlk Yılı Bütçesi”, Belgeler, V: 4, No: 7/8,
TTK, 1967, p. 11.
11 Mehmet Akif Erdoğru, “Osmanlı Döneminde Kıbrıs Şekerhaneleri (1571-1607),
Güneydoğu Avrupa Araştırmaları Dergisi, No:12, İstanbul 1998, p. 71-72.
12 Faruk Tabak, Solan Akdeniz 1550-1870, Coğrafi-Tarihsel Bir Yaklaşım, tra. Nurettin
Elhüseyni, Yapı Kredi Yayınları, İstanbul 2010, p. 96.
13 Z. Karademir, “Osmanlı İmparatorluğu’nda Şeker Üretim ve Tüketimi”, p. 185-186. 14 According to 1893-1894 (1309) financial year budget, state expenditure totaled
existed, but imports had reached a level nearly 3.5 times more than to exports. The bill of confectionery imports priced 2,200,838 piasters; whereas export gains reached only 644,966 piasters. 15 In Ottoman sugar imports, there were
two important countries. Austria was the most important sugar exporter to the Ottomans. Its share was steadily increased in the Ottoman imports; in years between 1891-93 %17.4, 1900-02 %31.9 and 1910-12 %29.2. Russia was the second important country in this trade. Its share was %10.1 in 1900-02 and %18 in 1910-12. 16
Table.1. Import Values of Sugar and Its Share in Ottoman Import (Golden Liras)
Years Value % Years Value % Years Value %
1878 1.027.894 5,1 1888 1.259.513 6,5 1898 1.927.736 7,2 1879 958.260 4,9 1889 1.537.857 7,3 1899 2.155.909 8,8 1880 1.108.806 6,2 1890 1.514.076 6,6 1900 1.762.046 7,4 1881 1.167.864 6,0 1891 1.299.505 5,3 1905 2.580.878 8,3 1882 1.469.408 7,3 1892 1.645.222 6,7 1907 2.264.612 9,6 1883 1.381.486 7,0 1893 1.765.407 7,3 1908 2.621.598 8,4 1884 1.320.142 6,4 1894 1.575.827 6,5 1909 3.045.407 8,8 1885 1.100.163 5,5 1895 1.395.391 6,8 1910 3.573.200 8,4 1886 1.473.227 7,1 1896 1.605.923 7,5 1911 3.258.731 7,2 1887 1.136.174 5,7 1897 1.608.427 6,9 1913 2.730.304 6,5
Source: Şevket Pamuk, 19. Yüzyılda Osmanlı Dış Ticareti, Devlet İstatistik Enstitüsü,
Ankara 2011, p. 55.
In this article, there were two questions to investigate about sugar: industry and agriculture. Firstly, industrial attempts of sugar production were mainly evaluated. Within historical perspective, activities of every entrepreneur were thoroughly described. But sugar production was not just an industrial business. For its raw material needs, it requires continuous agricultural support; because raw material, especially sugar beet, cannot be waited too much for transportation and processing. Every lost minutes means decrease in sugar content of these plants. During storage time in silos waiting for processing, one ton sugar beet loss daily half pound pure sugar. 17 Due to this reason,
of 7.35% of state budget. This shows that sugar had a great market in the Ottoman Empire. Tevfik Güran, Osmanlı Malî İstatistikleri Bütçeler 1841-1918, Devlet İstatistik Enstitüsü, Ankara 2003, p. 124
15 Tevfik Güran, Osmanlı Devleti’nin İlk İstatistik Yıllığı 1897, Devlet İstatistik Enstitüsü,
Ankara 2011, p.202.
16 Şevket Pamuk, 19. Yüzyılda Osmanlı Dış Ticareti, Devlet İstatistik Enstitüsü, Ankara
2011, p.66-67.
17 R. H. Cottrell, Pancar Şekeri Ekonomisi, tra. Ziya Kütevin, Türkiye Şeker Fabrikaları A.
agriculture was also an important subject in this article. Other than sugar cane and beet, some different plants were tried for sugar production.
Table.2. Wholesale Sugar Prices in İstanbul between 1884-1914 (piaster/kantar=54.5 kg) 1884 145,0 1895 93,5 1906 82,9 1885 160,0 1896 89,5 1907 91,0 1886 137,5 1897 84,5 1908 107,5 1887 141,0 1898 86,5 1909 101,5 1888 145,8 1899 86,5 1910 109,0 1889 155,0 1900 85,0 1911 118,0 1890 125,0 1901 78,5 1912 119,5 1891 102,5 1902 70,0 1913 93,0 1892 116,5 1903 76,8 1914 77,5 1893 122,0 1904 100,0 1894 96,3 1905 93,0
Source: Şevket Pamuk, İstanbul ve Diğer Kentlerde 500 Yıllık Fiyatlar ve Ücretler, 1469-1998,
Devlet İstatistik Enstitüsü, Ankara 2000, p. 172.
In this article, time period was held quite a long; because sugar manufacturing was not very common activity in the Ottoman Empire in this period. Periodization started in 1840 with Dimitri Efendi who was first entrepreneur in sugar manufacturing. It ended with 1908 that Ottoman economic perspective was completely changed in that time. In Tanzimat era, the Ottoman Empire maintained liberal economic policies. State limited his intervention to economic activity, due to liberal thought. But after 1908, politics and economics intermingled, partly from conscious policies and partly from financial difficulties of World War I. 18
After periodization, scope of article was another problem. In this article eight entrepreneurs were evaluated. First three entrepreneurs targeted to operate in İstanbul. Remaining five ventures aimed to work in four different places. Rauf Pasha in Edirne and Ahmet Refik Pasha in Syria had their own farms to cultivate sugar beet. They planned to establish factories in their farms. Yusuf Bey wanted to work in Afyonkarahisar. He did not have a farm, but he claimed that local beet cultivation was sufficient to meet raw material needs of new factory. With fertile soils of Çukurova, fourth location for sugar manufacturing was Adana. Two associates requested licenses for establishment of sugar factories. But contrary to other entrepreneurs, sugar cane was more important than sugar beet in their region.
Other than these eight enterprises, there were some different attempts in sugar manufacturing. They are excluded from this article that either they stayed
18 Zafer Toprak, Türkiye’de Milli İktisat, 1908-1918, Doğan Kitap, İstanbul 2012, p.
in proposal level, or there was not enough knowledge about their future. But for the sake of integrity, they will be mentioned here with a few sentences. First, Kirkoryan Sergiz Efendi wanted to establish a sugar factory in Samsun. Sugar cane and beet would be cultivated in Canik Sanjak. 19 Second, Henry
Gruold named British citizen handled sugar cane in Bursa to produce sugar, alcohol and beverage. But he also requested to process sugar beet. 20 Third,
Vanderi Solet wanted to produce sugar from beet. He demanded to be allocated to himself free lands from state. But he turned to Europe; his petition was shelved by Council of State (Şura-yı Devlet). 21 Fourth, Monsieur de
Lenjevil was retired from French embassy. He gave a petition to government for establishment of sugar factories and refineries. But he did not come back to İstanbul. 22 Fifth, Vitalis Pasha and his foreign citizen associates had a farm in
Rumeli Kavağı near İstanbul. They planned to found a sugar factory in this farm. But state did not tolerate this attempt, because of possible security risks for İstanbul. 23 Sixth, Monsieur Gablac and his associates’ had a sugar
manufacturing facility in Beirut. But it was plundered. For their losses, the French embassy demanded compensation from the Porte (Sadaret). But in that point, there was an ambiguity that this facility was producing raw sugar or confectionary. 24
Dimitri Efendi’s Sugar Beet Factory Attempt
The earliest sugar beet industry attempt in the Ottoman Empire was practiced by Dimitri Efendi. He was one of the traders of İstanbul. He wanted to establish a sugar factory in the outer part of Istanbul’s city walls. His request was met in Assembly of Public Works (Nafia Meclisi). After the meeting, Government granted a ten year privilege to Dimitri Efendi on 11 March 1840. According to this privilege document, government gave four facilities to Dimitri Efendi. Firstly, because locally cultivated beets were not suitable to sugar production, Dimitri Efendi would import required beet seeds from abroad. Secondly, Dimitri Efendi could plant sugar beet both in Rumelia and Anatolia. He could cultivate it either in his own fields or in rented lands. Thirdly, if he would pay the tithe of these sugar beets, he could process them in his factory. Finally, government would not grant privilege to any other person in this sector for ten years. Except these facilities, government wanted three demands about taxation. First of all, if cultivated beets would be exported as raw material, Dimitri Efendi must pay custom duty. Secondly he must pay
19 BOA ŞD 1825/40. 21 Receb 1286, 27 October 1869. 20 BOA ŞD 1173-A/20. 6 Şevval 1289, 7 December 1872. 21 BOA ŞD 2405/31. 8 Zilkade 1290, 28 December 1873.
22 BOA Y.PRK.AZJ 12/62. 12 Rebiülevvel 1305, 15 Teşrinisani 1303, 27 November
1887.
23 BOA A.MKT.MHM 502/68. 22 Receb 1309, 9 Şubat 1307, 21 February 1892. 24 BOA BEO 2384/178790. 20 Cemaziyelevvel 1322, 21 Temmuz 1320, 3 August 1904.
manufacturing tax according to the quality of his product. Best quality 20, medium quality 15 and low quality 10 piasters would be paid for every 45 kilogram sugar. Thirdly if his production would be imported, he must also pay custom tax. 25
Davutoğlu Karabet’s Sugar Factory Attempt
Davutoğlu Karabet was the second entrepreneur in sugar factory establishment of the Ottoman Empire. Like Dimitri Efendi, he also wanted to establish factory in İstanbul Yenibahçe. But he also planned to found another one in İzmir. There were no available knowledge about negotiations in between state and Davutoğlu Karabet. Only available document was a privilege contract that it was signed by him and Minister of Public Works (Umur-ı Nafıa Nazırı) on 31 May 1866. This contract consisted of nine articles. First article was written for the main conditions of privilege. Davutoğlu Karabet had own plot in Yenibahçe, he would found İstanbul factory in here. For İzmir factory, he would choose a place that it was free from any handicap. He was granted a privilege of twenty years long. For raw material needs, he could either import them or obtain from local sources. He planned to produce sugar from familiar plants of sugar cane and beet. But he also wanted to use sorghum which was totally unknown plant for Ottoman peasants. 26
Sorghum is a large grass, somewhat similar to sugar cane. But it is propagated by seed not by cuttings. It is used for sorghum syrup chiefly in North America. Sorghum was introduced to the USA from China approximately in 1850’s. Although it has considerable amount of sucrose, sorghum has been some difficulties for sugar industry. Sorghum juice is unsuitable for refined granule sugar. It contains high percentage of gummy constituents. In addition these, it also includes starch which forms dextrin that all of them make filtration difficult and impede crystallization of sucrose. These two substances often cause sorghum syrup to jelly. 27
Second and third articles were organized the health and environmental conditions of production. Ministry of Public Works demanded the usage of copper or copper like healthy material in machines and syrup cauldrons. In addition for the pretty look of sugar and its package, usages of zinc white or Prussian blue like paints were prohibited. Before the invention of lime application for condensation of sugar, animal blood and bones were used for this aim. For example, Rauf Pasha, who will be mentioned later, would plan to use lime 24 years later. But the conditions of 1866 were required to usage of
25 Turan Veldet, 30. Yılında Türkiye Şeker Sanayii, Türkiye Şeker Fabrikaları A. Ş.
Neşriyatı, Ankara 1958, p. 21.
26 BOA A.DVN.MKL 5/12. 16 Muharrem 1283, 31 May 1866.
some animal materials. The State demanded that only cow or sheep blood must be used for the refinery of sugar syrup. In addition to blood, powder of bones was used to crystallization of sugar. Again only same animals’ bones could be used. For the preparation of bones, they must be free from any flesh and fat. After this cleaning, they could be dried in large ovens. In this point, an environmentalist point of look came into play. State wanted that these operations must be made out of the city walls, because of the danger of air pollution. But if Davutoğlu Karabet would build at least 68 meter long factory chimney or find another way to exterminate all harmful gasses, he could operate within city walls.
According to fourth article, Davutoğlu Karabet guaranteed to sell sugar 20 paras lower than market prices to all official institutions like barracks, hospitals and almshouses. In fifth article, state permitted to be founded a steam engine in Karabet’s factory. But he could not use steam engine except sugar production. In sixth article, state underlined that Davutoğlu Karabet must accept all the rules and taxes of sugar production and commerce which was either in force or declared later. In contrary to Karabet, following entrepreneurs will obtain many tax exemptions. 28
According to seventh article, Davutoğlu Karabet must start to build factories within a year and to produce sugar within two years. Otherwise Karabet’s privilege would lose its formal existence. He would also not have permission to sell privilege for third parties. If any sale would happen, privilege became invalid. In eighth article, state granted some conveniences for raw material. Required animal bones from kitchens of official institutions were allocated to his factory. In the final article, conditions of privilege would be supervised by Ministry of Public Works. For expenses of this inspection, Davutoğlu Karabet would have to pay 3000 piasters yearly to the ministry. 29
Davutoğlu Karabet could not achieve to found sugar factories. On 29 May 1870, Osman Remzi Efendi gave a petition to Ministry of Public Works to describe this situation. Osman Remzi Efendi aspired to obtain Karabet’s privilege with same conditions, except five years long period. 30
Activities of Lighthouses Director Monsieur Michel
Monsieur Michel wanted to obtain sugar production privilege in the Ottoman Empire both from beet and cane for 50 years. His translated petition
28 BOA A.DVN.MKL 5/12. 16 Muharrem 1283, 31 May 1866. 29 BOA A.DVN.MKL 5/12. 16 Muharrem 1283, 31 May 1866.
30 “Şeker mamulatı hakkında Davud oğlı Karabete… virilmiş olan imtiyaz ferman-ı
alisinin hükmüni infaza muvaffak olamamış ve müddet-i imtiyazı tamam olalı hayli zaman olduğından hükmi kalmamış olmağla…” BOA ŞD 2858/20. 27 Safer 1287, 29 May 1870.
had been evaluated in Council of Ministers (Meclis-i Vükela). After negotiations, attained result would be presented to Sultan via the Porte. 31 After
seven months later, Monsieur Michel submitted a new petition to government. In this petition, he declared that he did not want to lose time. He planned to start first experiments in sugar production. First of all, he wanted to found an experimental sugar factory and refinery in between the towns of Darıca and Hereke. He chose for the place of these facilities, among the shore and Haydar Pasha railways for transportation simplicity. Because he would commence to cultivate sugar beet; he demanded to consider his request speedily, before the end of plantation time. Monsieur Michel will go to Paris in nearby to order new machines for factories. Before this trip, he also wishes to prepare their places and buildings. 32
Monsieur Michel demands were considered beneficial to country’s economic development. Due to this reason, they were accepted by the state. But Council of State would thoroughly evaluate his sugar production privilege request later. Pre-requisitions of Monsieur Michel were granted, because of four reasons. Firstly initial facilities would be founded for experimentation. Secondly proper time of sugar beet plantation could be missed. Thirdly many difficulties would also happen in factory construction during winter. Factory buildings should be finished before the onset of winter. Finally in order not to delay the coming of newly ordering machines from Europe, the petition and requested license were confirmed. The Porte considered that this enterprise could be a good example to the sugar beet and cane cultivable regions of the Ottoman Empire. Thus peasants would attain a new income source and country’s trade would also expand. 33
31 “Memalik-i şahanede kamış ve pancardan şeker imali imtiyazının elli sene müddetle
kendüsine itası istidasına dair fenerler sahib-i imtiyazı mösyö Mişel tarafından…” BOA İ.DH 799/64786. 13 Safer 1296, 6 February 1879.
32 “Yakında Parise azimet ideceğim cihetle memalik-i şahane sevahilinde şeker fabrikası
ve tasfiye hanesi küşadı hakkında hükümet-i seniyyeden istida eylediğim fermanın sudurına intizaran Darıca ile Hereke beyninde vaki arazinin sahil ile Haydar Paşa timur yolı hattı üzerindeki bir mahallinde li-eclit-tecrübe bir küçük şeker fabrikası ile bir küçük tasfiye hane inşa itmekliğim hususına müsaade-yi celile-yi vekaletpenahilerini istirham ider ve mezkûr arazide pancar zer itdireceğimden vakt-i gaib itmeksizin işe mübaşeret idebilmekliğim içüm işbu istida-yı acizanemin… alınmasını rica eylerim mezkûr fabrikalara vaz olunacak makineleri Avrupaya sipariş ideceğimden bunlar yapılub gelinceye kadar burada yerlerini inşa itdireceğimi arz eylerim…” BOA HR.TO 465/53. 19 September 1879.
33 “…tezyid-i servet ve mamuriyet-i memlekete vesile olacak bu misüllü tesisat-ı
nafıanın vücudundaki fevaid ve muhsenat derkar olduğından mumaileyhimin sair şeker fabrikaları imtiyazı içün dermeyan eylediği şerait Şura-yı Devletde badel-tedkik neticesi başkaca arz ve istizan olunmak üzere şimdilik bir numune olmak ve mevsim-i ziraat ve inşaat güzeran ve Avrupaya sipariş olunacak makinelerin celbini tehir itmemek içün işbu
Monsieur Michel gained a license for experimentation, but this was not enough for his further plans. He wanted country wide extent and considerably long period which would be lasted 50 years, sugar production privilege. His privilege request was evaluated in Council of State Public Works Section (Nafıa Dairesi) on 3 December 1879. Public Works Section firstly defined the size of Ottoman sugar market. Sugar was a consumer commodity that it was a great local demand. Approximately 122 million piasters paid yearly to Europe for its import bill. Beside this huge demand, lands of the Ottoman Empire were capable of both sugar cane and sugar beet plantation. Although these convenient conditions, there was no sugar factory in the Ottoman Empire. Naturally foundation of this type of industrial facilities would provide so many benefits to Ottoman Economy. 34
Up until this point, Monsieur Michel request was met very nicely. But Public Works Section had some reservations against demanding privilege. In general, granting privilege is accepted as a contradiction to normal operation of economy. Privileges establish some sort of monopoly and they prevent internal competition. As to lack of competition, it harms country’s economy. Public Works Section opposed the idea of privilege, but they were aware of the Ottoman Empire’s current conditions. Even with granting privilege, supporting Monsieur Michel demands would provide three benefits. First of all, foundation of sugar factories would revive many fields and country’s agriculture. Secondly these factories would diminish trade deficit. Thirdly new local factories would decrease the price of sugar. In addition to these benefits, Monsieur Michel was the only available entrepreneur in sugar production. In the near future, any eager person would not be seen who wished to found a sugar factory. Although some damages of privilege, huge capital required factories could not found without it. Expectation of any entrepreneur who would confine only with license, in real, was not a probable event. Public Works Section wanted to be started sugar production in the Ottoman Empire with available means. Privilege bore some sort of monopoly, but Public Works Section thought that it did not cause any real problem. They offered answers to two likely questions. Firstly, istidanın terviciyle ruhsat-ı matlubenin itasını tezkire kılınması da ve bu fabrika ve tasfiye hane vücuda geldiği halde memalik-i mahrusa-i şahanenin arazisi şeker imaline kabil mahsulat zerine elverişli olan sair mahallerinde dahi bir menba-ı servet ve ticaret açılmasına numune olacağı bedihi bulunmuş olmağla…” BOA İ.MMS 64/3020. 2 Şevval 1296, 19 September 1879.
34 “…Memalik-i şahanenin azam sarfiyatından biri şeker olduğı ve arazimizin pancar ve
şeker kamışı ziraaına pek ziyade kabiliyet ve istidadı bulundığı halde bunun imaliçün… fabrikalar yapılamaması hasebiyle her sene yüz yirmi iki milyon guruşı mütecaviz akçe Avrupaya gitmekde olduğına nazaran bu fabrikaların tesis ve inşası hususının müstelzim olacağı muhsenat muhtacı tarif olmayub…” BOA İ.MMS 65/3054. 18 Zilhicce 1296, 21 Teşrinisani 1295, 3 December 1879.
demanding monopoly did not establish state monopoly (yedd-i vahid) 35 over
sugar sales. It banned only foundation of new sugar factories by other people. Thus this type of monopoly was practiced just in production. Secondly implementation of privilege was a necessity to support local industry against European competition. Due to commerce agreements with Europe, the Ottoman Empire could not levy heavy custom tax over import sugar. Granting production monopoly was the solely tool for this aim. 36
After the evaluation of Monsieur Michel demands within the perspective of industrial development, Public Works Section asserted two more arguments to support him. Firstly, increasing sugar cane and beet cultivation provided much more tithe (aşar vergisi) to state budget. Secondly, newly founding factories increased employment and many people worked in there. Public Works Section was persuaded for the importance of Monsieur Michel demands. But they objected in three points about the conditions of privilege. First point was directed to validity period of privilege. It was considered too long to accept. Second objection point was the geographical extent of privilege. Extension of privilege to whole country was not accepted. Some sort of limitation must be practiced and privilege must allocate only some provinces. Third objection was oriented the governmental share of factory’s profit.
35 Yedd-i Vahid was a kind of state monopoly that it was practiced only in commercial
areas. The Ottoman Empire founded trade monopoly over some goods, during the reign of Mahmud II. State banned free trade of these goods to the public. But state was not producer of these goods in Yedd-i Vahid system. System was abolished with sign of 1838 Baltalimanı Trade Agreement. Ahmet Kala, İstanbul Esnaf Tarihi Tahlilleri İstanbul
Esnaf Birlikleri ve Nizamları 1, İstanbul Büyükşehir Belediyesi Kültür İşleri Daire
Başkanlığı Yayınları, İstanbul 1998, p.145-147.
36 “…vakıa o misüllü şeylerin imtiyaz ve inhisar altına alınması maksadı aslı olan
rekabet-i dâhiliyenin husuline mani olageldiği mülahazasınca memleket içün bir dereceye kadar mazarr ve usul ve kaide-i cariyeye mugayir ise de velev imtiyaz ile olsun bu fabrikaların inşası birçok arazinin imarıyla beraber harice çıkan mebaliğ-i külliyeden bir kısmının dâhil-i memleketde kalmasını ve şekerin tehvin-i fiyatını mucib olacağından… hususıyla şimdiye kadar memalik-i şahanede şeker fabrikaları tesisi zımnında hiç kimse tarafından rağbet-i izhar olunmadığı gibi kariben dahi bu babda talibler zuhur ideceği ve cesim sermayelere muhtac olan bu fabrikaları bila-imtiyaz küşad eyleyeceği malum olmadığından atide yalnız ruhsatla şeker fabrikaları inşa idilerek rekabet hâsıl ve halk daha ziyade müstefid olur mütalaasına binaen memleketin gayr-i mahdud bir müddetle şeker imali faidesinden mahrum idilmesi tecviz olunamayacağına ve taleb olunan inhisardan arza şeker füruhtı maddesinin yed-i vahide virilmesi hususı olmayub yalnız başkalarının şeker imaline mahsus fabrika inşasına salahiyeti olmaması maddesinden ibaret olduğı ve hasbel-uhud Avrupadan şeker idhalini mene medar olur ağır resim vazı mümkün olamayacağı cihetle sanayi-i dâhiliye mahsulatı ecnebiyenin rekabetine tayanabilmek içün behemal teşvikat ve teshilat-ı fevkalade ve böyle bir muamele-i istisnaiye görmeğe muhtaç olduğı…” BOA İ.MMS 65/3054. 18 Zilhicce 1296, 21 Teşrinisani 1295, 3 December 1879.
Monsieur Michel offered 20% of the net profit to government. But for the sake of simplicity, Public Works Section demanded this share should be given from gross profit. After the interview with Monsieur Michel, all problematic points were settled. For the privilege period, 37 years were decided after the approval of Sultan. Two years were allocated as construction period. For the area of privilege, İstanbul, Edirne, Thessaloniki, Erzurum, Trabzon, Samsun, Kastamonu, Aydın, Damascus, Baghdad, Adana and Aleppo provinces were determined. Other than these twelve provinces, Monsieur Michel had a priority to any probable entrepreneurs for sugar production. If anyone would want to take a privilege in other than twelve provinces, his offer must be better than Monsieur Michel one’s. However the Ottoman Empire excluded Mümtaz Vilayetler, Hejaz, Tripoli, Yemen, Crete and Archipelago provinces from this privilege agreement. For the third point, governmental share would be paid from gross profit; but the ratio was diminished to 8% from 20%. At the end, Monsieur Michel accepted that he must complete sugar factories in at least five provinces within two years. Otherwise privilege lost its formal existence. 37
Main frame of the privilege were settled, but Public Works Section specified some reservations. If these factories would open, sugar import and hereupon it’s custom duty would decrease. Naturally these factories production would become free from internal custom duty. This situation would cause to diminish in an income source of the state, but given 8% share would compensate this loss. In addition to this share, if factories could start to import their products, state would acquire an extra income source. Taxation affairs
37 “…pancar ve şeker kamışı aşarından hazine-i celile istifade edeceği gibi birçok
nüfusun fabrikalarda istihdamıyla tayişleri temin idilmiş olacağına binaen esas istidanın kabuli muvafık-ı maslahat görünmüşdür şerait-i imtiyaziyeye gelince imtiyazın kâffe-i memalik-i şahaneye şümuli olması ve elli sene müddet itası ve hasılat-ı safiyeden yüzde yirmisinin hükümet-i seniyyeye aid olması maddelerinden ibaret olub bu kadar müddet ise istiksar olunduğından bunun tenkısı ve kâffe-i memalik-i şahanenin taht-ı imtiyaza alınması münasib olamayacağı cihetle inhisarın yalnız bazı vilayata hasrı ve hükümete aid hisse-i temettüanın muameletce mucib-i suhulet olmak üzere hasılat-ı gayr-i safiyeden virilmesi lazım geleceği hakkında Michel Paşa ile birçok mübahasat cereyanından sonra fabrikaların tesisi içün Dersaadet Edirne Selanik Erzurum Trabzon Samsun Kastamoni Aydın Şam Bağdad Atana ve Haleb vilayetlerinin tahsisi ve vilayat-ı mümtaze ile Hicaz ve Trablus ve Yemen ve Cezair-i Bahr-i Sefid ve Girid müstesna olmak üzere vilayat-ı saire içün dahi şerait-i müstaviye ile hak-kı rüchan ita olunması ve müddet-i imtiyaziyenin iki sene tayin olunan inşaat müddeti dâhil olmadığı halde otuz beş yani tarih-i ferman-ı aliden itibaren otuz yedi seneye tenziliyle beraber hasılat-ı gayr-i safiden yalnız yüzde sekizinin hükümet-i seniyyeye aid olması ve ferman-ı ali tarihinden iki seneye kadar tadad olunan vilayatdan la-ekall beşinde şeker fabrikaları inşa olunmaz ise imtiyazın fesh olunması hususlarına paşa-yı mümaileyh muvafakat itmiş ve bundan ziyade tadilatı kabul idemeyeceğini tahriren beyan eylemişdir…” BOA İ.MMS 65/3054. 18 Zilhicce 1296, 21 Teşrinisani 1295, 3 December 1879.
were not seen as a problem, but geographical area of privilege was still accepted as too much. Monsieur Michel was subjected to some limitations in the extent of privilege area. But Public Works Section thought that these limitations did not have any real effect in sugar production. Monsieur Michel obtained a privilege that it was covered twelve provinces. In addition to this, he had a priority for other provinces. Although there were some exceptional regions, their ability to be grown sugar cane and beet was not known. Granting privilege in this way would result that whole country could enter the privilege of Monsieur Michel for a long time. 38
After the territorial extent of privilege, Public Works Section criticized the general conditions of Monsieur Michel by comparing with European producers. They thought that Monsieur Michel obtained too many advantages. He would pay 8% to government from his profit. This ratio was equal to current custom duty rate. But in Europe, especially in France, sugar producers experienced much more difficult conditions. In there, land values and worker wages were so high. Every entrepreneur started his work without privilege, because industry was freely practiced. Sugar producers also had to pay 26 francs for every 100 kg sugar as a production tax. In addition, import sugar was exposed heavy custom tax. Sugar was exposed in France such a treatment that similar procedure was practiced to salt 39 in the Ottoman Empire. Whereas
both land values and worker wages in the Ottoman Empire were much cheaper than Europe. Over these convenient conditions, Monsieur Michel also obtained a privilege. As a response of production monopoly, Public Works Section found appropriate that he should pay more than 8%. They also thought that Monsieur Michel’s work was capable of doing it. But he completely rejected any further changes. In front of this rejection, Public Works Section transferred the
38 “…bu fabrikaların tesisi husule geldiği takdirde şeker idhalatı ve binaenaleyh gümrük
rüsumatı tenakıs idecek ve bittabi bu fabrikaların mamulatı dâhili gümrük resminden muaf olacak ise de bunların temettüından devlete virilecek resmin bu noksana tekabül itmesi memul olub ihracat vukuunda dahi alınacak resimden başkaca istifade idileceğine mebni burası cay-ı tereddüd olmayub ancak Michel Paşa on iki vilayatı taht-ı imtiyaza almak arzusunda ve küsurı içün dahi hak-kı rüchan talebinde olduğından ve istisna idilen vilayatın pancar ve şeker kamışı zerine salih olub olmadığı mechul idüğinden ve buna müsaade olundığı halde kâffe-i memalik-i şahanenin müddet-i medide inhisar altına alınmış olması mahzurı varid-i hatır olmuş…” BOA İ.MMS 65/3054. 18 Zilhicce 1296, 21 Teşrinisani 1295, 3 December 1879.
39 Public Works Section mentioned about Rüsum-ı Sitte administration. This
administration was founded in 22 November 1879; to transfer salt, silk, alcohol, fishing, tobacco and stamp taxes to creditors of the Ottoman Empire. Taxes were directly collected by creditors instead of state. Salt and tobacco monopolies were ceded to creditors. Naturally creditors applied strict discipline in production and taxation of salt to extract their loans. Mehmet Hakan Sağlam, Osmanlı Devleti’nde Moratoryum 1875-1881,
demand of Monsieur Michel to Ministry of Commerce for preparation of privilege draft. Although some reservations, Public Works Section accepted his request beneficial to country. 40
The Porte maintained his former positive opinion about the foundation of sugar factories. But he had some reservations about the operation of Monsieur Michel’s privilege in six subjects. Firstly, the Porte repeated the obligation of factory construction for remaining in force of privilege. At least five or six factories must be finished within two years. The Porte thought that 15 or 20 years appropriate for the length of privilege. The Porte also demanded that Monsieur Michel should only have priority in other provinces, after the construction of primary factories. Secondly, the Porte wanted some changes in taxation affairs. In the privilege areas, peasants must pay tithe for their cultivation of beet and sugar cane. When referring tithe, the Porte mentioned turnip instead of beet. This ambiguity probably resulted from no recognition of beet in the country. The Porte ordered to repeal profit sharing. Instead of this, Monsieur Michel would have to pay custom duty of his factories’ products if they would transfer by the sea. Fourthly, up until to the end of privilege, factories’ product would be exempt from all taxes. In addition all the tools and machines of factories would also be free from custom tax within same period. Final demand of the Porte was about the underlining of the Ottoman Empire’s administrative rights. All the probable jurisdictional problems would be settled in Ottoman courts. If import custom duty would be abolished and a new tax would have been put in to effect, privilege contract would change according to new conditions. 41
40 “…hasılatdan hükümet-i seniyyeye virilecek olan yüzde sekiz elyevm istifa oluna gelen
gümrük resmi derecesinde olub hâlbuki Avrupada ve ezcümle Fransada arazi kıymeti ve amele ücreti pek fahiş olmasından kat-ı nazar serbest-i sanayi hasebiyle herkes bila-imtiyaz fabrika küşad itmekde iken beher yüz kilogram şeker içün resm-i imaliye olarak hükümete yirmi altı frank virilmekde ve haricden getürilen şeker içün dahi ağır resim vazıyla tuz hakkında olunan muameleye karib bir muamele icra olunmakda olduğından ve memalik-i şahanede gerek arazinin gerek amele ücretinin ehveniyeti memalik-i saireye mikyas olamayub birde imtiyaz virileceğinden bu inhisara mukabil yüzde sekizden ziyade bir şey virilmesinin kaideten lüzumı ve işin buna tahmili derkar bulunmuş olmağla tafsilat-ı maruzaya Michel Paşanın daha ziyade tadilat icrasına muvafakat idemeyeceğini katiyen beyan eylemesine nazaran esas ve teferruat maslahat-ı karin-i kabul-i ali olduğı halde şerait-i meşruha dairesinde iktiza iden mukavele layihasının tanzimi hususının Ticaret Nezaretine havale buyurılması…” BOA İ.MMS 65/3054. 18 Zilhicce 1296, 21 Teşrinisani 1295, 3 December 1879.
41 “…işbu istenilen imtiyazın itası esasen makbul ise de şerait-i esasiyenin bazı cihetleri
muhtac-ı tadil görünmesiyle olbabda cereyan iden müzakeratın neticesinde evvela vilayet-i mahruseden nihayet beş altı vilayetde ve iki sene zarfında fabrikalar inşa idilmediği halde imtiyaz münfesih olmak ve müddet-i imtiyaz on beş nihayet yirmi seneye tenzil idilmek saniyen ber-vechi meşruh beş altı vilayetde ve iki sene müddetde
Ministry of Commerce evaluated the presented conditions. In general, they were accepted as negotiable demands. But validity period became an objection point. Monsieur Michel mentioned that he could not organize administrative structure, if his period was shortened to 15 to 20 years. Any insistence for this curtailment enforced him to finish his attempts of privilege obtaining. 42
During the privilege negotiations, Monsieur Michel prepared a contract draft on 25 July 1881. This draft contained ten articles. First two articles contained same conditions with the Porte. Twelve provinces and 37 years were offered for the validity of privilege. In third and fourth articles, Monsieur Michel tried to narrow his construction responsibilities. Whereas the Porte demanded two years and at least five factories to be constructed, in order to maintain privilege; he offered one factory building in these provinces within three years. In addition all twelve provinces were remained under the control of Monsieur Michel’s privilege, up to ten years. If he could not finish a factory within this period in any of these provinces, this part of privilege would be excluded from main contract. Fifth article was written for underlining of experimentation. For the first three years, no one could attain sugar production privilege. Only after gaining enough experience in this sector by him, government could grant privileges for the remaining part of the Ottoman Empire. But Monsieur Michel had priority over probable new entrepreneurs, if he accepted same conditions which were proposed by them. 43
Sixth and seventh articles were written about taxation. Factory construction and machinery were exempt from any duty. In that point, Monsieur Michel made clear that he planned to refine raw sugar instead of production. Because in his draft, he claimed that farmers would pay tithe and fabrikalar tesis ider ise andan başka mahaller içün şerait-i müstaviye ile hak-kı rüchanı bulunmak salisen taht-ı imtiyaza virilecek mahallerde husule getürilecek şalgam ve şeker kamışının öşri ita olunub fakat hasılat-ı gayr-i safiden teklif idilen yüzde sekizin ahzından sarf-ı nazarla fabrikalar imalatından bahren vuku bulacak nakliyatdan lazım gelen gümrük resmi alınmak rabian fabrikalar müddet-i imtiyaziyenin hitamına değin virgüden ve fabrikalar edevatı dahi müddet-i muayyenesi zarfında gümrük resminden muaf tutulmak hamisen fabrikalarca bir gûne müşkilat ve münazaat vukuunda mahkeme-i Osmaniyece hal ve fasl idilmek sadisen ihracat resm-i gümrüği lağv idilür ve buna mukabil devletce bir resim tahsis olunur ise tediye olunmak üzere tadilat ve tashihat icrasıyla bir mukavelename tanzimi zımnında…” BOA ŞD 1187/9. 14 Muharrem 1297, 16 Kânunuevvel 1295, 28 December 1879.
42 “…Michel Paşa celb ile tebliğ-i keyfiyet olundukda şerait-i esasiyeden ekserisi
hakkında muvafakat idebilmesi melhuz ise de müddet-i imtiyaziyenin on beş ve nihayet yirmi seneye tenzili halinde teşkil-i idareye muvaffak olamayacağından müddet-i imtiyaziye istidası vechiyle otuz yedi sene olarak ihsanı buyurılmaz ise imtiyaz-ı mezkûradan sarf-ı nazar itmesi lazım geleceğini bil-beyan…” BOA ŞD 1187/9. 5 Rebiülahir 1297, 4 Mart 1296, 16 March 1880.
then he demanded tax simplicity in his industrial production. For import duty, he wanted to pay only 1%. In addition, every sale within the Ottoman Empire which was transferred either in land or via sea must be free from any tax. If he planned to obtain raw material from local sources, he would specify some requests for tithe. Subsequent entrepreneurs, except Yusuf Bey, would not neglect this detail.
In eighth article, Monsieur Michel requested a regular demand source from state. If there were no price and quality differences; sugar needs of military, hospitals and other governmental offices should be met from local production. In ninth and last article, there were references to administrative rights of the Ottoman Empire which was also mentioned by the Porte. Any probable jurisdictional problem was litigated in Ottoman courts. In addition, ıf privilege owner would found a company, it became an Ottoman corporation. The company could not be transferred to third party without the consent of Ottoman government. 44
In front of Monsieur Michel’s determined attitude, the Porte did not urge him about the length of privilege period. Privilege request was sent to Council of State Reorganization Section (Tanzimat Dairesi), in order to be discussed the remaining topics. 45 Monsieur Michel’s attempt did not go further from this
point. He could not succeed to produce sugar. But his starting point was an interesting location. He started experimentation in between the towns of Darıca and Hereke. They were very close to İstanbul. This situation could be explained by transportation facilities both railway and sea carriage. Additionally İstanbul was an important sugar consumer point. But in that location, there was not an enough sugar beet production to successfully operate a factory. Even in republican era, this region was not an important beet cultivation area. At the end, they wanted to import cheap raw sugar from West Indies, with excuse of lack of sufficient raw material. Monsieur Michel venture resembled commercial activity rather than production business. 46
Rauf Pasha’s Sugar Production Activities in Edirne and İstanbul Rauf Pasha wanted to establish a sugar factory in Edirne Uzunköprü. In this region, he had two farms that in the name of Salarlı and Çatalkırı. For the raw material needs, Rauf Pasha would cultivate sugar beets in his both farms. But he decided to found the factory in Salarlı farm. For the decreasing of management costs of the factory, he wanted four facilities from state. His demands were conveyed by Ministry of Commerce and Public Works (Ticaret ve Nafıa Nezareti) to the discussion of Council of State Reorganization Section
44 Same document.
45 BOA ŞD 1187/9. 7 Şevval 1297, 31 Ağustos 1296, 12 September 1880. 46 T. Veldet, 30. Yılında Türkiye Şeker, p.33.
on 7 October 1891. His first demand was tithe exemption in the cultivation of sugar beets for ten years. Secondly, newly constructing factory should be exempt from all taxes. Thirdly, all the necessary technical equipment for factory foundation and sugar beet seeds should be imported free from custom tax. Rauf Pasha’s last demand was acceptance of newly establishing factory as sugar provider of army and navy. To confirm this demand, he offered five per cent discount in sugar price. Officially recognition provided a prestigious position to the factory. Except prestige, retaining an official position of sugar provider of army and navy provided a regular source of demand to the factory. 47
Members of Reorganization Section began to consider Rauf Pasha’s demands. In general factory foundation was accepted beneficial for country. As to details, majority of the members approved the exemption of tithe in sugar beet cultivation. For the second request, factory was not received full tax exemption. Cancellation of property tax was not found suitable for factory, because of contradiction to implementing practice of other entrepreneurs. For the third request, except fuel all of the demands were accepted. For the final request, state showed an objection. All the state needs had been bought with auction. After auction, an obligation of additional five per cent discount did not find appropriate by Reorganization Section. This request was withdrawn from the talks. In this meeting Rauf Pasha accepted all offers, but he insisted that factory’s coal needs must be immune from custom tax. He declared that 100 tons of coal met his need. This amount approved, but Reorganization Section finally wanted to apply a control mechanism. Necessary technical equipment of factory foundation and beet seeds records must be controlled by the Porte. At the end of the meeting in Reorganization Section, a joint resolution was reached between the members and Rauf Pasha. 48
47 “Edirne vilayetinde vaki Cisr-i Ergene kazası dâhilinde mutasarrıf olduğı Salarlı ve
Çatalkırı çiftliklerinde şeker imali içün ziraa olunacak pancar on sene müddet öşürden muaf olmak şartı ve şerait-i saire ile mezbur Salarlı çiftliğinde bir şeker fabrikası tesis ve inşası içün ruhsat itası hakkında… Rauf Paşa hazretleri tarafından vuku bulan istida üzerine Ticaret ve Nafıa Nezareti…ba-tezkire takdim olunub Şura-yı Devlete havale buyurılan müzekkire melfufatıyla beraber Tanzimat Dairesinde kıraat olundı…inşa olunacak fabrikanın virgüden istisnası ve inşaat-ı ibtidaiyesi içün celb olunacak makine ve alât ve edevat ile ziraa olunacak pancar tohumunın bila resm-i gümrük imrarına müsaade itası…ve müşarünileyh canibinden askeriye ve bahriye içün alınacak şekerin yüzde beş tenziliyle itasına muvafakat” BOA A.DVNSMKLT.d.6, p.78.
48 “…fabrikanın tesis ve inşası memleketce menafi-i kesireyi müstelzim olacağı cihetle
esasen şayan-ı kabul olub… mezkûr fabrikanın ihdas ve işledilmesini teminen müddet-i mezkûra zarfında ziraa olunacak pancarın öşürden afvı… ve fabrikanın birinci defa tesisi içün haricden celb olunacak mahrukatdan maada alât ve edevatın ve fabrika mamulatının gümrük resminden muafiyeti dahi nizamına ve mukteza-yı maslahata muvafık olarak ancak fabrikanın emlak virgüsünden istisnası emsaline mugayir olmagla mezkur fabrikanın emlak virgüsüyle mükellef tutulması ve fakat bilumum levazım-ı
One week later topic was brought to Council of Ministers. The Council accepted all details, because they considered that foundation of this type of industrial facilities was beneficial to country. The following day, foundation of Rauf Pasha’s factory received Sultan’s consent. 49 On 16 November 1891,
Ministry of Interior (Dahiliye Nezareti) informed the Edirne governorship about Rauf Pasha’s attempt of factory foundation. 50
In order to enlarge his initial rights, Rauf Pasha gave a new petition to Ministry of Commerce and Public Works. In this petition first demand was extension of the period from ten to twenty years. Later Rauf Pasha wanted an extra assurance to his venture. If sugar beet production of his farm devastated, he had to provide sugar beet from outside to continue sugar production. In this case, situation was firstly researched by state. Later all raw material needs would be brought to factory without paying custom tax. Council of State Reorganization Section considered new demands of Rauf Pasha on 21 May 1892. Both of demands were accepted. First factory’s period extended from ten to twenty years. As to second demand Reorganization Section wanted a guarantee. Prior to any type of probable disasters, sufficient amount of beet must be planted in Rauf Pasha’s farms. After that if any problem had experienced, state officials investigated the situation. Later he had right to tax exemption for his factory’s raw material needs. 51
On 1 June 1892, Rauf Pasha’s confirmed demands were presented to council of ministers. Here all the former reconciliation was totally accepted. emiriye münakasa tarikiyle iştira olundığı cihetle bedel-i münakasadan yüzde beş noksanıyla şeker itasına müşarünileyhin mecburiyeti münasib olamayacağından bu şartın tard idilmesi lazımeden görülerek… cümlesine muvafakati hâsıl olub fakat fabrikanın işledilmesi içün haricden celb olunacak senevi nihayet yüz tonalito maden kömürinin dahi resm-i gümrükden istisnasını taleb idüb… fabrikanın birinci defa tesisi içün celb olunacak alât ve edevat ile pancar tohumını alel-usul defteri Bab-ı Alice tasdik olundıktan sonra bila resm-i gümrük imrar olunmak…” BOA İ.MMS 126/5396. 3 Rebiülevvel 1309, 25 Eylül 1307, 7 October 1891.
49 BOA A.DVNSMKLT.d.6, p.79.
50 BOA DH.MKT 1890/52. 14 Rebiülahir 1309, 4 Teşrinisani 1307, 16 November
1891.
51 “…Rauf Paşa hazretlerinin …bir şeker fabrikası tesis ve küşadı içün ba-irade-i seniyye
mukaddema irae olunan müsadaatın bazı mertebe-i tevsii olunmasına dair müşarünileyh tarafından ahiren nezarete virilen istidanamede salifüzzikr on sene müddetin yirmi seneye temdidi ve müddet esnasında pancar mezruatının hasardide olduğı devletce bit-tahkik anlaşıldığı takdirde memalik-i mütecavireden celbine mecburiyet hâsıl olacak ham mevad-ı esasiyenin resm-i gümrükden muafiyeti… ruhsat müddeti olan on senenin yirmi seneye iblağı ve fabrikanın istihlakına kafi mikdarda pancar ziraa olunub da afât-ı semaviye ve araziyeden tolayı hasar-dide olduğı hükümetce bit-tahkik tebeyyün eylediği halde fabrika içün memalik-i mütecavireden celb olunacak ham mevad-ı asliyenin bila-resim idhali…” BOA A.DVNSMKLT.d.6, p.148.
After two days, Rauf Pasha’s demands of time extension and tax exemption were confirmed by the Sultan. 52 Four days later subject steered to Ministry of
Interior, Ministry of Commerce and Public Works and Customs Administration (Rüsumat Emaneti). 53 When it came to date of 22 June 1892, Ministry of
Interior informed the Edirne governorship about the changes of Rauf Pasha’s attempt of factory foundation. 54
Although Rauf Pasha had taken a license (ruhsat) to found a sugar factory, he could not achieve this target because of European competition. Approximately seven years later, he renewed his efforts. He founded a company to organize his works. His demands were considered in Yıldız Palace Head Clerical Office (Yıldız Sarayı Baş Kitabet Dairesi) and found appropriate; because of a probable increase in beet cultivation and foundation of a new factory were seen beneficial to country. In addition, this venture had formerly taken Sultan’s approval. 55 For the beginning of negotiations, subject directed to
Ministry of Commerce and Public Works on 23 February 1899. 56
Rauf Pasha gave a petition to Ministry of Commerce and Public Works on 3 April 1899. In his petition, he mentioned the process of his venture. First of all, he imported sugar beet seeds from Europe. These seeds were planted in Salarlı and Çatalkırı farms for experiment. In these farms, successful crops were harvested. In order to check the quality of cultivated sugar beets, some examples were sent to analysis both European and Ottoman laboratories. After tests, satisfactory results were taken. This situation showed that harvested beets as successful as European examples, because of fertile fields of farms. After this point, Rauf Pasha repeated former details of factory foundation. Then he began to mention his new activities. His first action was the foundation of a company to conduct the works of factory. He chose his business partners from Belgium. Before the commencement of factory foundation, Rauf Pasha wanted to underline subvention needs by giving an example from Europe. In European countries, governments granted ten to twelve francs prim to every 100 kilograms locally produced sugar. For the healthy operation of newly establishing factory, it must be supported by the state. Otherwise European competition prepared the end of the factory. But Rauf Pasha’s demand was quite a bit different from European example. He did not want direct payment;
52 BOA İ.MMS 131/5613. 8 Zilkade 1309, 22 Mayıs 1308, 3 June 1892. 53 BOA BEO 15/1122. 26 Mayıs 1308, 7 June 1892.
54 BOA DH.MKT 1965/46. 27 Zilkade 1309, 10 Haziran 1308, 22 June 1892.
55 “…pancar zeriyle şeker fabrikası tesisi içün teşkil iden Osmanlı şirketi tarafından taleb
olunan imtiyazın itası… istida idilmiş ve pancar ziraatının teksiriyle böyle bir fabrikanın tesisindeki menafi ve fevaid meydanda olub bu babda vaktiyle de müsaade-i seniyye-i mülukane şayan buyurılmış olduğından…” BOA İ.HUS 73/29. 10 Şevval 1316, 9 Şubat 1314, 21 February 1899.
instead of this, he requested demand support from government. For the needs of Hazine-i Hassa, military offices and pious foundations directorates (Evkaf-ı Hümayun müdürlükleri); his production must be preferred to purchase over foreign goods. He also demanded official recognition of this preference. 57
Every factory’s success is dependent to decrease running costs and obtain some additional sources of income. Rauf Pasha was also aware of this reality. He took firstly attention to reduce costs for fuel and transportation necessities of factory. He demanded lignite mining privilege; but up until the completion of this, he requested tax exemption in coal importation. This exemption requisition also existed in his former meetings, but demanding quantity was considerably increased. In seven years earlier, he accepted 100 tons coal as a yearly fuel need. But he had increased this amount 40 times higher to 4000 tons coal. With his new partners, he wanted enlarge his production capacity. In this petition he declared his production target as 4000 ton white sugar as a yearly basis. For diminishing cost, his second demand was about transportation. Rauf Pasha wanted to establish a railway connection from Ergene train station via his factory to nearby lignite mine. 58
Maintaining cheap production was an important point for the achievement of any factory, but successful competition with Europe might require additional sources of income. He wanted to obtain new income sources to his factory other than beet sugar production. Firstly, Rauf Pasha wanted to gain a permission to found supplementary factory. After sugar production, there were remained some residues from beets. From these beet residues, he planned to produce spirit. He also planned to found a sugar refinery in İstanbul. In
57 “…Salarlı ve Çatalkırı çiftliklerinde mukaddema Avrupadan şeker pancarı tohumı
celb ile li-eclit-tecrübe zer olunub ve hâsıl olan pancarın Avrupada ve burada hin-i tahlilde çiftlikan-ı mezkûra arazisinin kuvve-yi inbaniyesi hasebiyle Avrupa mahsulüne faik olduğı tebeyyün ve tahkik iderek ol-vakit bazı müsaadatın ihsanı… tebaa-i Osmaniye ve Belçika muteberanından mürekkeb bir Osmanlı anonim şirketi teşkil olunarak işe mübaşeret kılınmak üzere ise de arz ve beyan-ı hacet olduğı vechiyle Avrupa memalikinde şeker ihracında revac virmek maksadıyla hükümetler tarafından beher yüz kilogram şeker içün on on iki frank raddesinde prim namıyla şeker fabrikalarına muavenetde bulunduklarından…burada şeker imaline mübaşeretde Avrupalıların rekabet-i cesimiyle fabrikanın tatili içün idecekleri teşebbüse meydan virilmemek içün…fabrika mamulatı şekerin ecnebi şekerler yerine tercihen Hazine-i Hassa-i Şahane ve devair-i askeriye ve evkaf-ı hümayun müdürlükleri içün mubayaasının taht-ı karara alınması…” BOA ŞD 1213/29. 22 Mart 1315, 3 April 1899.
58 “…ayruca ihsanı istirham olunan linyit madenin imtiyazının itasına değin fabrika-i
mezkûra senevi lüzumı olacak dört bin tonalito maden ve kok kömürinin idhalinde resm-i gümrükden muafiyeti Ergene şimendüfer istasyonundan çiftliğe ve oradan imtiyaza binaen ihsanı… istirham olunan linyit madenine kadar bir timur yolunun temdidine müsaade ve mezuniyet ihsanı…” BOA ŞD 1213/29. 22 Mart 1315, 3 April 1899.
